asked the Minister for Finance if he will bring forward to the present time the proposed reduction of taxation on company profits recently announced for a future date.
Ceisteanna—Questions. Oral Answers. - Company Profits Taxation.
52.
In my statement on the economic situation on 27th October last I announced among other measures the reduction in the maximum rate of company taxation in two stages, that is to say, from 58 per cent to 54 per cent next year and from 54 per cent to 50 per cent the following year. The cost of this reduction is estimated at £2.7 million next year and £7.2 million the following year.
Although no cost to the Exchequer arises this year from this measure, the reduction enables tax provisions currently being made by companies to be reduced since their income tax assessments are based on profits earned during the preceding year.
In addition to this measure, provision was made in last year's Budget for other tax measures of benefit to companies. These were the extension to the entire country of free depreciation and the provision, on top of this, of special investment allowances for the designated areas. These measures were estimated to cost £3 million this year and £6 million next year.
The cost to the Exchequer of bringing forward to next year the reduction to 50 per cent in the maximum rate of company taxation would be a further £2.7 million and in view of the generous reliefs already provided I am not prepared to make this additional concession.
Is the Minister aware that is a very long answer to a very simple question? Whenever there is an answer of that sort from those benches I know they are attempting to hide something.
Perhaps the Deputy does not wish that the House, and indeed the public, might be reminded of what has been done in this respect.
It is not that at all. The Minister is not the worst offender. Certain of his colleagues, when asked a question, read out two foolscap sheets of words so that the whole thing is submerged in words.
I do not regard this as an awkward question.
The Chair would like to remind the House——
I have no objection at all——
Will the Deputy permit the Chair to speak? The Chair would like to remind the House that there are still 235 questions remaining to be answered.
The Chair is very optimistic.
The Chair asks for co-operation from the House in regard to supplementary questions.
Would the Minister consider reducing the corporation profits tax immediately to 50 per cent in view of the unemployment situation?
That is the question that was put down and it is the question to which I have replied. I do not know why the Deputy asked it again but since he has may I point out to him, since he put it in the context of unemployment, there have been reductions in such taxes in Britain and the Deputy knows what has happened in regard to unemployment there? So there must be more to the problem than company tax.
I accept that the corporation profits tax is only one item in the matter of unemployment but I think that in the Irish situation an immediate reduction would have a beneficial effect.
I wonder if the Deputy has taken in my reply about the concessions already given which are designed to assist companies which are investing.